RESTRUCTURING
Edcon and watchdog sing from same book
CEO Bernie Brookes prioritises competition authorities’ conditions in the group’s strategic plan
Edcon CEO Bernie Brookes turned necessity into virtue on Wednesday, when he agreed that key parts of the group’s strategic plan would be made conditions of the competition authorities’ approval of the debt-to-equity restructuring that was announced in September. Stable to growing employment, increased focus on import-replacement as well as securing the Edcon empowerment trust were all made conditions of approval by the Competition Tribunal. The Competition Commission had recommended that the plan to convert Edcon’s creditor base into equity holders be approved unconditionally. However, following intervention by Economic Development Minister Ebrahim Patel, the tribunal’s approval came with conditions attached. These conditions mirrored the plans Edcon announced in September. The troubled retailer will retain the current workforce and "is likely to" employ an additional 2,000 new staff within two years.
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